TMI Blog2023 (3) TMI 1194X X X X Extracts X X X X X X X X Extracts X X X X ..... hich is admittedly beyond the period of four years from the end of the assessment year 2009-10. Order passed by the ITO(TDS), Moradabad u/s 206C(1C)/206C(6A) dated 29.03.2016 is barred by limitation and the same is quashed. Decided in favour of assessee. - I.T.A No.7985/Del/2019 - - - Dated:- 24-3-2023 - Shri G.S. Pannu, Hon ble President And Shri Challa Nagendra Prasad, Judicial Member For the Assessee : Shri Kanav Malhotra, Adv. For the Revenue : Shri M. Barnwal, CIT DR And Shri Sanjay Kumar, Sr. DR ORDER PER C.N. PRASAD, J.M. This appeal is filed by the assessee against the order of the Ld. Commissioner of Income Tax (Appeals), Moradabad dated 29.03.2016 for the AY 2009-10. The assessee has raised the follow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... asons beyond the control of the assessee and that there is no malafide in not preferring the appeal within time. 6. BECAUSE, on the facts and in the circumstances of the case, the impugned order passed by the Ld. CIT (A), sustaining the order of ITO (TDS) u/s 206C (6A) of the Income Tax Act is unsustainable and bad in law since it is voilative of the principles of natural justice as no Notice have been served by the Assessing Officer before passing the impugned order. 7. BECAUSE, on the facts and in the circumstances of the case, the impugned order passed by the Ld. CIT (A), sustaining the order of ITO (TDS) u/s 2060 (6A) of the Income Tax Act is unsustainable and bad in law since the demand raised upon the assessee is based on wr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... non collection of taxes at source (TCS) on receipt of payments made by lessees, licensees or the right holders in form of royalties and related compensatory and other amounts. The Ld. Counsel for the assessee submits that the impugned order was passed by the Assessing Officer on 29.03.2016 is barred by limitation as it was passed beyond the reasonable period of time. Ld. Counsel submits that though the provision contained in Section 206C of the Act does not specifically prescribed any time limit for initiation of proceedings for passing order u/s 206C of the Act, a reasonable period of four years from the end of the assessment year should be the basis and since the order was passed beyond the period of four years, the same is barred by limi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... us, a consistent view has been taken by the various Hon'ble High Courts on this issue that when no limitation is provided in the statute then a period of four years is considered as reasonable for passing the order U/s 201(1)/201(1A) of the Act. The provisions of Section 206C of the Act are analogous and a measure for compliance of collection of tax at source as a similar measure for compliance of deduction of tax at source is provided U/s 201 of the Act. The department has accepted those decisions and consequently brought amendment to the provisions of Section 201 and thereby provided the limitation for passing the orders U/s 201(1)/201(1A) of the Act which was inline with the view taken by the Hon'ble High Courts on this issue. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct Mining Officer vs. ITO(TDS) in ITA Nos. 243 to 246/Lkw/2019 dated 16.12.2020 following the decision of the Jaipur Bench of the Tribunal. In the case on hand admittedly the order u/s 206C(1C)/206C(6A) assessment year 2009-10 was passed on 29.03.2016 which is admittedly beyond the period of four years from the end of the assessment year 2009-10. Applying the ratio of the above decision of the Jaipur Bench and Lucknow Bench, we hold that the order passed by the ITO(TDS), Moradabad u/s 206C(1C)/206C(6A) dated 29.03.2016 is barred by limitation and the same is quashed. 8. Ground no. 2 of grounds of appeal is allowed. 9. In the result, appeal of the assessee is partly allowed. Order pronounced in the open court on 24/03/2023 - - T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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